Mahakavi Edasseri Smaraka Trust Vs ITO (Exemptions) (ITAT Cochin)
The Income Tax Appellate Tribunal (ITAT), Cochin allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals) dated 21.12.2022, which had upheld the rectification of the processing of the assessee’s return under Section 143(1)(a) of the Income-tax Act, 1961 through an order passed under Section 154.
The assessee, a charitable trust registered under Section 12A on 15.06.2015, filed its return of income for AY 2018-19 on 14.09.2018. It declared income of ₹87,430 after claiming accumulation of 15% of its gross income of ₹1,02,862 under Section 11(1)(a), resulting in a nil tax liability. While processing the return under Section 143(1)(a), the Centralized Processing Centre denied the claim for accumulation and computed tax on the returned gross income, resulting in a tax liability of ₹30,858.
The assessee filed an application under Section 154 seeking rectification of the processing under Section 143(1)(a). The Revenue rejected the rectification request, following which the assessee’s appeal before the Commissioner (Appeals) was also dismissed. The assessee then appealed before the Tribunal.
No one appeared on behalf of the assessee before the Tribunal despite service of notice and repeated opportunities. The appeal was therefore heard ex parte after hearing the Departmental Representative and examining the record.
